5 Best Large-Cap Dividend Growth Stocks To Buy Now

4. Eli Lilly and Company (NYSE:LLY)

Number of Hedge Fund Holders: 76
5-Year Average Dividend Growth Rate: 13.9%

Eli Lilly and Company (NYSE:LLY) is an American pharmaceutical company that specializes in a wide range of medicines and drugs. In December 2022, the company declared a 15% hike in its quarterly dividend to $1.13 per share. Through this increase, the company took its dividend growth streak to nine years and its 5-year average dividend growth rate came in at 13.9%. It has been paying uninterrupted dividends to shareholders for the past 138 years, which makes it one of the best dividend stocks on our list.

Morgan Stanley raised its price target on Eli Lilly and Company (NYSE:LLY) in April to $445 with an Overweight rating on the shares, presenting a positive outlook on the company for this year.

As of the fourth quarter of 2022, 76 hedge funds tracked by Insider Monkey reported owning stakes in Eli Lilly and Company (NYSE:LLY), up from 75 in the previous quarter. The collective value of these stakes is over $5 billion.

Baron Funds mentioned Eli Lilly and Company (NYSE:LLY) in its Q4 2022 investor letter. Here is what the firm has to say:

“Eli Lilly and Company (NYSE:LLY) is a large-cap pharmaceutical company. Shares increased on investor optimism about Lilly’s new product pipeline, which includes Mounjaro for diabetes and obesity and Donanemab for Alzheimer’s disease. We continue to think Lilly has a healthy base business with limited near-term patent expirations, a strong pipeline, and potential for significant margin expansion, which should translate to strong revenue and earnings growth over at least the next five years.”